North Carolina Down Payment Support Programs

Online Payments - The North Carolina Housing Finance Agency has two great plans for First Time Home Buyers. These systems would be the Mortgage Credit Certificate and also the deposit Assistance Program.

You purchase a house between December 1, 2009 and January 1, 2009 and if you qualify for one of the programs, you can even be eligible for the $8,000 tax credit only enacted into law in the Federal Economic Stimulus Plan.

First, who's a First Time Home Buyer? There is a first-time Home Buyer someone who hasn't owned a home in the prior three years. Here is precisely the same qualifying definition.

What is a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction. The MCC takes this a step farther.

If you are eligible for the MCC, you are able to claim 20% of the interest you pay as a credit on your federal income taxes on your own mortgage. You can save up to .

You may be able to combine this with the $8,000 tax credit should you qualify for 2009, for the MCC. This might reduce a purchaser's tax liability by $10,000.

Who Qualifies for an MCC?

Household income means the “gross income of the mortgagor and any individual expected to reside in the dwelling who's 18 years of age or older.”

House price limitations that apply in Durham Orange and Chatham Counties and the income are given below.

MCC Income Limits 1 Person $61,500 2 Men $61,500 3 Men $70,500 4 Individuals $70,500

MCC Sales Cost Limitations New House $220,000 Existing Home $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that want help with their down payment and closing costs may be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The buyer only has to pay $1,000 of their own funds and the load would pay up to $8,000 of the remaining balance.

This program has stricter income limits than the MCC plan outlined above. Like the MCC program, it can be used along with all the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The down payment help, nonetheless, cannot be used in combination together with the MCC. This is an either or scenario.

House price limitations that apply in Durham Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Men $45,650 3 Men $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New Home $210,000 Existing Residence $210,000